News Oil & Gas

India to see $58 billion investment in upstream oil sector: Hardeep Singh Puri

New Delhi: India is expected to receive an estimated $58 billion of investment in the upstream oil and gas sector by 2023, petroleum minister Hardeep Singh Puri said on Friday, adding that several global companies like Chevron, ExxonMobil, and Total Energies have shown keen interest to invest in Indian exploration and production segment.

Speaking at the Voice of Global South Summit, the minister said, “The government has set a target to increase the net geographical area under exploration from 8% (0.25 million sq. km) to 15% (0.5 million sq. km) by 2025 and is expecting an investment of $58 billion in E&P by 2023.”

“We have reduced the prohibited/no-go areas in our EEZ (exclusive economic zone) by 99% of our EEZ opening up nearly 1 million sq kms for exploration to attract the domestic & Overseas investors,” he added.

Puri said that the country is ready to explore opportunities for joint development production of oil & gas assets for mutual benefit and also invites investment in our domestic E & P Sector.

The minister added that India has increased the ethanol blending in petrol from 1.53 per cent in 2013-14 to 10.17 per cent in 2022. He said, the country has set a target to achieve 20 per cent ethanol blending in petrol by 2025-26.

He stated that India is undertaking an ambitious journey of energy transition to achieve net carbon zero by 2070. This transition has to be stable and just to ensure that it remains consistent.

“India has met its commitment of 40% of its installed electricity capacity from non-fossil energy sources by 2030 in November 2021 itself. The country’s installed Renewable Energy (RE) capacity by October 2022 stands at 166 GW while its nuclear energy based installed electricity capacity stands at 6.78 GW,” Puri said.

India is setting up 2G refineries utilizing agricultural waste and bamboo to make ethanol, using indigenous technology. This contributes to achieving rural prosperity and also goes a long way in reducing pollution along with achieving energy security goals.

Adding another feather to the Indian journey to decarbonization, Puri said that the E20 will be rolled out soon in 11 States/UTs much earlier than initial target date of 1 April 2023. Fifteen cities will be covered under phase-1. “We are targeting phased rollout of E20 in entire country between now and April 2025,” he remarked.

The minister added that government is also targeting to set up production capacity of 15 MMT of CBG from 5000 plants by 2023 with an investment of $20 billion.

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